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Kitchener Housing Starts Trending Lower

TORONTO, ONTARIO--(Marketwired - May 18, 2016) - Housing starts in the Kitchener-Cambridge-Waterloo (KCW) Census Metropolitan Area (CMA) will trend lower and range between 2,800 units and 3,100 units in 2016 and between 2,500 units and 2,900 units in 2017, according to the Canada Mortgage and Housing Corporation's (CMHC) Spring Housing Market Outlook report released today. Apartment starts will decline further from near record levels in 2014, while single-detached starts will trend higher.

Existing home sales are forecast to range between 5,900 units and 6,300 units in 2016 and between 5,900 units and 6,500 units in 2017. The resale market is expected to favour sellers as demand outpaces supply. With sellers' market conditions, the average resale price is expected to range between $365,200 and $374,800 in 2016 and between $373,600 and $386,400 in 2017.The apartment vacancy rate is forecast to increase slightly in both 2016 and 2017, primarily due to an increase in the supply of rental housing.

"Housing starts will be trending down closer to the long-term rate of household formation. Construction of single-detached homes will increase as demand from move-up buyers remains strong. However, apartment starts will trend lower as the construction of apartments geared to students declines," said Erica McLerie, CMHC Senior Market Analyst. "Employment and population growth will support demand for housing. A tight resale market due to demand increasing faster than listings will lead to some spill-over of demand to the new home market."

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As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.